Taxes for individuals — how to declare crypto profit in Lithuania

Crypto taxation in Lithuania is logical — once you get one rule, you can file it yourself. The core rule is simple: sold at a profit — pay GPM. Since 2026-01-01 the rate is no longer a single number: the first slice of annual profit is taxed at 15%, anything above that progressively. All that's left is the details, which we'll unpack below.

Figures in this lesson were checked on 2026-09-05. This is not tax advice — rates change, check the current ones at vmi.lt.

Note: this lesson describes Lithuanian tax rules specifically (GPM, VMI). If you're filing in another country, the underlying logic is usually similar, but the rates, forms, and deadlines will differ — check your own country's tax authority.

The core rule: GPM on realized profit

GPMGPMGPM — Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson → (Lithuania's personal income tax) is due on realized profit. Since 2026-01-01, crypto sale profit counts as non-employment income, and the rate depends on the annual amount:

The part that's easiest to miss: to work out which band you land in, all of your annual income is added up, salary included. So crypto profit can push you into the 20% band even when the profit itself is modest.

The GPMGPMGPM — Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson → law also sets an annual tax-free amount for gains on selling other assets (crypto included); at the start of 2026 it was 2,500 EUR, and tax applies only above that threshold. The table examples above are simplified and ignore it. Both the threshold and the rates changed in the 2026 tax reform — always check the current values at vmi.lt.

When do you need to declare?

Annual return — by May 1st

Every year by May 1st you declare last year's income through the VMI system.

1. 1

   Gather your transaction history

   Export CSVs from Nexo, Kraken, Deribit, Jupiter. Or use Koinly.

2. 2

   Calculate profit/loss

   For each sale: sale price - purchase price = profit. FIFO method (First In First Out — first bought, first sold).

3. 3

   Fill in the GPM311 return

   The VMI EDS system (deklaravimas.vmi.lt). Sales of other assets (crypto) go in wizard part D, "Income from property", income type code 13. Self-employment income — part C, code 93. Interest (outside self-employment) — part E, code 59.

4. 4

   Pay the tax

   Pay into the VMI account using payment code 1441. Deadline — by May 1st (for 2026 income, by 2027-05-01), or as instructed by VMI.

VMI already sees your trades (DAC8)

From 2026, licensed crypto-asset service providers (exchanges, brokers, custodians) must report data about their customers and their transactions to VMI themselves. The first report covers 2026 and is due by 2027-05-31, and annually after that.

What's taxable?

Stablecoin trades

Even stablecoin trades (e.g. USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → ↔ EURC, or USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → → EUR) can generate a profit or loss. Reason: the EUR/USD exchange rate changes.

Example:

• Bought 1000 USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → when EUR/USD = 1.10 → paid 909 EUR
• Sold 1000 USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → when EUR/USD = 1.05 → received 952 EUR
• Profit: 43 EUR → tax 6.45 EUR (in the 15% band)

Offsetting losses

If you had losses — you can offset them against profit from the same year:

Tools for calculating taxes

Koinly (recommended)

CoinTracking

DeFi specifics

LP fees

Every time you collect fees from OrcaOrcaA Solana DEX with concentrated liquidity (Whirlpool). The basis of our LP strategy on the Solana network.Read the lesson →, UniswapUniswapAn Ethereum concentrated-liquidity protocol (V3/V4). Its Solana counterpart is Orca.Read the lesson →, or MeteoraMeteoraA Solana DLMM (bin-based) liquidity protocol. An alternative to Orca, with dynamic fees.Read the lesson → — that's income. Koinly can track it automatically.

Options premiums (Deribit)

• Sold a PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → = received premium = income
• Sold a CallCallAn option type that grants the right to BUY at the strike price. The opposite of a put.Read the lesson → = received premium = income
• Bought a PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → = an expense (can offset against profit)

Lending interest (Kamino, Aave)

Interest on your collateral — income, taxed on the same scale (15% in the first band).

Common mistakes

1. Forgetting swap transactions — SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → → USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → is a sale
2. Not tracking DeFi income — LPLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → fees, staking rewards
3. Using the wrong purchase price — always FIFOFIFOFirst In, First Out — a tax-accounting method: the first units bought are treated as the first sold.Read the lesson →
4. Not declaring an airdrop — it's income at the moment you receive it
5. Forgetting stablecoin gains — the EUR/USD rate moves

Summary

UAB and other legal entities

If you're planning to manage a larger DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → portfolio, or want a clearer tax structure, it can be worth operating through a company (a UAB). This section explains why that can help, how to open exchange accounts, and what you need to know.

Why a company (UAB)?

Exchange accounts for companies

Kraken Business Kraken

Kraken is one of the best exchanges for companies. It has a dedicated business product.

Registration process:

1. 1

   Apply through the Kraken Business page

   Go to kraken.com/institutions or kraken.com/business. Fill in the application.

2. 2

   Submit your company documents

   You'll need: certificate of registration, articles of association, shareholder list, director's passport, proof of company address.

3. 3

   Wait for approval

   Kraken Business approval takes 5-15 business days. That's longer than for an individual.

4. 4

   Connect your company bank account

   Connect a business bank account for SEPA transfers. Important: the account must be in the COMPANY's name, not personal.

5. 5

   Start operating

   Once approved, you can deposit euros and buy crypto. All transfers — only to/from the company account.

Kraken Business advantages:

MiCA-licensed EU alternatives

The first step before registering anywhere: check the provider in the ESMA MiCA CASP register. If it isn't there, it isn't legally providing services in the EU.

Deribit Corporate Deribit

DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → is the main crypto options exchange (owned by Coinbase since 2025-08-14).

First, a common myth to clear up: an individual in Lithuania does have DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → access — Lithuania is not on the restricted-jurisdiction list. The real difference is elsewhere: retail clients are served by DRB Panama Inc., not by the Dubai VARA-licensed DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → FZE. You only become a direct DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → FZE client with qualified-investor status. A corporate account gives you sub-accounts, API access and cleaner bookkeeping — not the access itself.

What a corporate account actually gives you:

Registration process:

1. 1

   Create an account at deribit.com

   Create an account and choose the "Corporate Account" type.

2. 2

   Submit KYB documents

   KYB (Know Your Business — the identification procedure for companies) is like KYC (Know Your Customer), but for companies. You'll need: registration documents, ownership structure, director's documents, description of activity.

   Deribit's KYB is stricter. Prepare every document in advance.

3. 3

   There may be an interview

   Deribit may ask further questions about the company's activity.

4. 4

   Approval

   The process can take 2-4 weeks. Once approved, you get full access.

5. 5

   Depositing funds

   Deribit only accepts crypto (BTC, ETH, USDC, SOL). Send it from your Kraken business account, or from another MiCA-licensed EU exchange.

Multisig wallets — multi-signature security

When you operate as a company, it matters that DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → funds are managed safely. Multisig (multi-signature) wallets require several people to approve every transaction.

Squads (Solana) SOL

How it works:

1. You create a Squads wallet with 3 members
2. You set it to require 2 of 3 signatures
3. One member initiates a transaction
4. Another member approves it
5. The transaction only executes once enough signatures are collected

Safe (Ethereum) ETH

Taxes in Lithuania — overview

Individual

Legal entity (UAB)

Accounting tools

Recommended structure for a UAB portfolio

UAB "Crypto Strategies"
├── Kraken Business (euros → SOL/ETH purchase)
│   ├── SEPA from the business account
│   └── SOL/ETH → transferred to multisig
├── Deribit Corporate (options strategies)
│   ├── USDC from Kraken → Deribit
│   └── Put Spread + Covered Call
├── Squads Multisig (Solana DeFi)
│   ├── SOL collateral → Kamino
│   └── USDC → Orca LP
└── Safe Multisig (Ethereum DeFi)
    ├── ETH collateral → Aave
    └── USDC → Uniswap LP

Step by step — setting up a UAB

1. 1

   Register the UAB

   Register the UAB at the Register of Legal Entities. Minimum capital: 1,000 EUR (since 2023). This can be done through a notary or online.

2. 2

   Open a business bank account

   Recommended banks: Swedbank, SEB, or Wise Business. The account must be in the UAB's name.

3. 3

   Find a crypto accountant

   It's essential to find an accountant who understands crypto. The number of such specialists in Lithuania is growing fast.

4. 4

   Open a Kraken Business account

   Submit the UAB's documents. Connect the business bank account for SEPA transfers.

5. 5

   Open a Deribit Corporate account

   Submit KYB documents. The process takes 2-4 weeks. Deribit only accepts crypto — send it from Kraken.

6. 6

   Set up a multisig wallet

   Solana: Squads (squads.so). Ethereum: Safe (safe.global). Set it to 2-of-3 signatures.

7. 7

   Start operating

   Euros → Kraken → SOL/ETH → Multisig → DeFi protocols. Part of the USDC → Deribit → Options.

Frequently asked questions

Do I need a special license?

No, as long as you're investing your own (company) funds. If you manage other people's money — you may need a crypto-asset service provider (CASP) license under the EU's MiCAMiCAThe EU crypto-asset regulation (Markets in Crypto-Assets).Read the lesson → regulation.

How much does setting up a UAB cost?

~200-500 EUR (notary + registration). Minimum capital: 1,000 EUR (since 2023).

Can I operate as a sole trader instead?

Self-employment (individuali veikla, IVIVImplied Volatility — the volatility the market expects. SOL IV is roughly 70-80%.Read the lesson →) isn't purely a choice. If you trade continuously, independently and for economic gain — frequent transactions, active LPLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson → and options management, exactly what this course teaches — VMI can classify it as self-employment without you asking.

Since 2026, the effective GPMGPMGPM — Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson → on self-employment income is roughly 5% up to 20,000 EUR of taxable income, rising to 20% at 42,500 EUR, and 20 / 25 / 32% above that. Note: the 2,500 EUR tax-free amount does NOT apply to self-employment income, but you can deduct either your actual expenses or a flat 30% of income. It's declared in GPM311GPMGPM — Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson → wizard part C, income type code 93 (sales of other assets go in part D, code 13).

A UAB gives you limited liability and broader deductions, but you pay dividend GPMGPMGPM — Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson → to get money out. Which form fits you is a question for an accountant, not a forum.

What accounting software should I use?

Koinly (crypto export) plus standard accounting software (Rivile, e-buhalteris).

Summary

A legal entity (UAB) gives you a structured approach to DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → strategies:

• Limited personal liability
• Professional tax accounting and deductible costs
• Sub-accounts and cleaner separation between strategies
• MultisigMultisigA multi-signature wallet — a transaction requires approval from multiple people.Read the lesson → security

What a UAB does not give you: DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → access (an individual in Lithuania already has it) or a lower total tax burden, if you pay the profit out to yourself.

You can now operate on your own: you protect your assets, spot scams, understand the risks, and keep your taxes and legal setup in order. The last lesson of Module 2 is about physical safety: how not to become a target. After it we'll start looking at DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → LendingLendingLending/borrowing in DeFi. You deposit collateral and receive a loan in stablecoins.Read the lesson → logic.